7th Pay Commission: Now HBA allowed for Indian Army, Navy, Air Force – Maximum Limit, Interest Rate
7th Pay Commission House Building Advance Latest News: Defence Service Personnel from the Indian Army, Navy and Air Force are now eligible for House Building Advance (HBA) as per recommendations of the 7th Pay Commission.
In a circular dated 19th June 2023, the Department of Military Affairs (DMA) said the President has decided that the Defence Personnel may be granted HBA under the House Building Advance Rules promulgated by the Ministry of Housing and Urban Affairs.
According to the circular signed by Laxmi Balasubramanian, Under Secretary to the Government of India, the President decided to liberalise further the existing scheme of HBA after considering the recommendations of the 7th Pay Commission and other relevant factors.
According to the circular, the following are the limits on HBA to be provided to Defence Personnel:
Purchase/construction of new house flat: 34 months’ basic pay subject to a maximum of Rs 7 lakh or cost of the house/ flat, or the amount according to repaying capacity, whichever is the least for construction/ purchase of new house/ flat.
Expansion of existing house: The amount of HBA will be limited to 34 months’ basic pay subject to a maximum of Rs 6 lakh or the cost of the expansion, or the amount according to repaying capacity’ whichever is the least.
Limit on the cost of house: The cost of the house to be built/purchased (excluding the cost of plot) should not exceed 139 times of the basic pay of the employee subject to a maximum of Rs 60 lakh.
The DMA said that in case the Head of the Department (HOD) is satisfied with the merits of the case, the cost ceiling may be relaxed up to a maximum of 25%. The HOD here would be the Adjutant General/Chief of Logistics/Air officer-in-Charge
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